- Seadrill recorded revenue of $577 million and EBITDA of $264 million in 2Q17.
- In the second quarter, the company suffered an operating loss of $100 million and a net loss of $158 million.
- Seadrill has a backlog of $3.1 billion.
- It recorded an economic utilization of 97%.
In its second quarter results, Seadrill gave its views on the offshore drilling industry outlook. According to Seadrill, the offshore drilling industry remains challenging. The main aim of oil companies is still cash conservation. Also, the company’s capex for full-year 2017 is now forecasted to be less than the initial guidance.
However, Seadrill sees some signs of potential recovery for the industry. The tendering activity, fixtures, and scrapping have increased compared to the previous quarter. According to Seadrill, the data points are showing the market is heading in the right direction. Seadrill believes in the long-term fundamentals of the industry.
On August 24, 2017, Seadrill’s stock price fell to a new 52-week low of $0.15. The stock is down 94.4% from the start of the year as of August 29, 2017. The year-to-date returns of other offshore drillers (XLE) as of August 29, 2017, are as follows:
In this series, we’ll examine Seadrill’s second quarter financial performance, dissect its revenues, costs, and EBITDA (earnings before interest, tax, depreciation, and amortization). We’ll also take a look at Seadrill’s progress towards restructuring its high debt.